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Texas Non-Compete Agreement Template

Texas will enforce a non-compete, but only when it rides alongside an otherwise enforceable agreement, such as a promise to share confidential information or provide specialized training. Keep the duration, territory and restricted activities reasonable, because although Texas courts must reform overbroad covenants, employers generally can't recover damages for breaches that happened before the rewrite.

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Texas rules to know

  • Must be tied to an enforceable agreement

    A Texas non-compete must be ancillary to or part of an otherwise enforceable agreement, such as the employer's promise to provide confidential information or specialized training. A bare promise not to compete, with nothing given in return, is generally unenforceable.

    Tex. Bus. & Com. Code 15.50(a)

  • Keep time, area and scope reasonable

    The restriction must be reasonable in duration, geographic area and the activities it blocks, and no broader than needed to protect goodwill or business interests. Customer non-solicitation clauses are generally judged under the same statute.

    Tex. Bus. & Com. Code 15.50(a)

  • Courts must rewrite overbroad terms

    If a covenant is overbroad, a Texas court must reform it to a reasonable scope rather than strike it. But an employer generally cannot recover money damages for breaches that happened before the court reformed it, so drafting it reasonably up front matters.

    Tex. Bus. & Com. Code 15.51(c)

  • Strict limits for health care practitioners

    For agreements entered or renewed on or after September 1, 2025, non-competes with physicians, dentists, nurses and physician assistants are limited to one year and a five-mile radius, must include a buyout capped at the practitioner's annual salary and wages, and must be clearly stated in writing.

    Tex. Bus. & Com. Code 15.50, as amended by SB 1318 (2025)

Last updated 2026-10-05

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Our Texas Non-Compete Agreement template as a Word document — a general starting point you fill in yourself. Sign in free to download it.

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What a non-compete agreement covers

  • Restricted activities and competitors
  • Duration and geographic scope
  • Non-solicitation of customers and employees
  • Consideration given for the restriction
  • Remedies and reformation
  • Governing law and venue

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Frequently asked questions

What does a Texas non-compete need to be tied to?
In Texas, a non-compete must be ancillary to or part of an otherwise enforceable agreement. A common example is the employer's promise to provide confidential information or specialized training. A bare promise not to compete, with nothing given in return, is generally unenforceable, so tie the restriction to what the employee actually receives.
Why draft narrowly if Texas courts will reform an overbroad non-compete anyway?
Texas courts must reform an overbroad covenant to a reasonable scope instead of striking it, but an employer generally cannot recover money damages for breaches that occurred before the reform. Setting reasonable time, area and activity limits from the start protects your ability to seek damages if a former employee competes.
Are there special Texas rules for non-competes with doctors, nurses or dentists?
Yes. For agreements entered or renewed on or after September 1, 2025, non-competes with physicians, dentists, nurses and physician assistants are limited to one year and a five-mile radius. They must include a buyout capped at the practitioner's annual salary and wages and must be clearly stated in writing.
Are non-competes enforceable?
It depends heavily on the state. A few states ban most employee non-competes outright, others cap them by salary, duration or industry, and many enforce only restrictions that are reasonable in time, area and scope.
What's the difference between a non-compete and a non-solicit?
A non-compete stops someone working for a competitor or starting a competing business. A non-solicit only stops them from poaching your customers or staff. Non-solicits are enforceable in more places, but not everywhere.
Can I use a non-compete when selling my business?
Usually yes. Sale-of-business non-competes are treated much more favourably than employee ones, even in states that otherwise ban non-competes.

Non-Compete Agreement in other states

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